Huawei 2020: Glory and commercial war

02/01/2021 14:01 GMT + 7

In the past year, Huawei achieved some success, but also faced many difficulties due to US sanctions.

In a moment of “flash”, Huawei officially surpassed Samsung to become the number one smartphone manufacturer in the world in the second quarter of 2020 with sales of 55.8 million units. Samsung sold 53.7 million units in the same period, according to Canalys. However, when the US-China trade war spread, Huawei’s “swan dance” had ended.

Huawei’s first-nine-month revenue reached 671.3 billion yuan, up 9.9 percent from the same period in 2019. However, revenue growth for the first nine months of 2019 was 24.4 percent, indicating the company. Nham Chinh Phi’s strength is not as strong as before. That is a result of Huawei’s own predictions.

US Secretary of State Mike Pompeo appeared on the “high speed” leading Huawei out of the global 5G network. Huawei stood at the center stage during the tech cold war between Washington and Beijing. In mid-May, the administration of President Donald Trump announced that companies need to apply for a license before selling chips to Huawei. Faced with the risk of being banned from the lucrative US market, major chip makers like Taiwan’s TSMC quickly complied.

Not only was pressure from the US, Huawei also had difficulty in Europe this summer when some countries finally had to “see” this company out the door.

In November, the US Federal Communications Commission ordered telecom companies to dismantle and replace Huawei equipment that is currently in use on networks. The program costs at least $ 1.6 billion because many US carriers are using federal subsidies to provide services in remote areas. The US Congress said it will spend about $ 1.9 billion to replace Huawei and ZTE telecommunications equipment, which is part of the $ 900 billion Covid-19 bailout package that has just been approved.

Therefore, instead of continuing to promote its advantage over Samsung, Huawei must purchase chips by all means to serve major markets like the mainland. Huawei’s Hubble Technology Investment has bought small stakes in three Chinese semiconductor companies in recent months. Some strategic decisions, such as a 3.3% stake in Skyverse, give Huawei access to technology independent of US permission.

Huawei has also shown that it no longer wants to compete for the top spot with Samsung. In October, the company decided to sell its entry-level smartphone division Honor in the hope that Honor’s business could grow without fear of US sanctions.

High-end smartphones such as the P40 Pro and Folding Mate X impress customers and journalists around the world. However, if Western users cannot access Google services on these smartphones, the Mate 2,400 price becomes too expensive.

Huawei is actively expanding its network with new projects, such as cooperating with Saudi Arabia on the cloud and artificial intelligence; Smart highway in Laos. Therefore, it is impossible to underestimate Huawei’s name in 2021 nor underestimate the work the company is doing in creating domestic chip supply chains from small players.

If the Joe Biden administration is about to surprise with a more reconciled stance with China, Huawei could come back and blow the heat on the back of Samsung at any moment.

Du Lam (According to Lightreading)

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